Bubble Man: Alan Greenspan and the Missing 7 Trillion Dollars

Book Description

The destructive legacy of the most powerful man in the world: Alan Greenspan, chairman of the Federal Reserve.

In this eye-opening account, Peter Hartcher reexamines the achievements of Alan Greenspan, the man who presided over the 1990s stock-market bubble—perhaps the biggest speculative frenzy in history—and walked away when it came crashing down, with his reputation apparently unscathed. The U.S. economy is still struggling with the fallout from Greenspan's tenure, which includes a bubble in housing prices, a rocky recovery, and a vast federal deficit. His mistakes live on, as does the question of what to do about bubbles.

Hartcher's careful investigation of the most financially expensive event in American history results in a gripping tale of failed leadership, excess, and the bizarre politics behind the world's most powerful economy.

Customer Reviews:

Greenspan's Legacy!.......2006-07-15

Since 1925 the average value of all America's shares has run 55% of GDP. Just before the 1929 crash it reached 81% - the highest level until 9/95's 82%. Then, in March of 2000 it broke through 183%. Meanwhile, from '97 to 2000, as stock prices rose 67%, total corporate profits fell 6%. (As for the myth that most Americans own lots of stock, in '98 the Fed found that the richest 20% owned 96% of all stocks.) Part of the problem was analysts - especially those tied to investment banks; corporations also contributed by smoothing earnings, stretching GAAP, ridiculous growth assumptions (eg. Internet volume would continue to double every 100 days), and even illegal accounting. But Greenspan was the biggest single problem (other than investors themselves who ignored the fact that there was a steady worsening in every financial ratio).

In December of 1996 he spoke of "irrational exuberance" in the stock market, creating stock drops around the world, including 144 in the DJIA. The subsequent outcry within Congress, and the recognition that President Clinton didn't trust him, led Greenspan to lose interest. (Experience convinced him that the Federal Reserve's independence was safe when either the President or Congress was upset - danger lurked when they both were.) Thus, instead of raising interest rates or margin limits, he basically did nothing, though staff forecasts began to incorporate expectations of 20% drops in the stock market. Making matters worse, Greenspan also endorsed the euphoria, attesting that we were in a "great historical transformation" with the Internet.

A second, similar bubble (housing) began prior to the market crash in 2000. In early post-WWII years the national housing stock was worth 60-70% of GDP; in '81 it hit 100%, and 140% in '04. It still is raging.

Subsequent to the 2000 crash, Greenspan has made a number of public exculpatory remarks - however, reviewing his private remarks within Federal Reserve Board meetings reveals obvious contradictions.

Greenspan has now left the Federal Reserve, but we are left with the new housing bubble, a stock market that still greatly exceeds historical ratios vs. GDP, a belief by many investors that stock and housing prices will continue to inflate (creating new bubbles), and the generally unrecognized problem of long-running deficits in the Federal government and our foreign trade. While "Bubble Man" is generally sympathetic to Greenspan's political plight during his tenure, it also makes clear that his lack of courage makes him primarily responsible

Whatever financial and political elites want.......2006-07-13

The capitalism described by Adam Smith in 1776 has almost nothing to do with the workings of 21st century corporate, and largely financial, capitalism driven and controlled by huge players and institutions, like the New York Stock Exchange. The little guy instead of being the essential player and equal of his fellows postulated by Smith is virtually helpless against these monoliths. But of course, these actual workings are not really talked about, even denied by capitalist propagandists. The Federal Reserve System is supposed to contain some of the excesses of corporate capitalism, not the least of which is maintaining appearances of integrity. This book is a statement on how well Alan Greenspan, the chairman of the Federal Reserve System from 1987-2006 dealt with economic issues under his purview, especially the stock market bubble from 1996-2001.

Alan Greenspan and other members of the FOMC knew that the valuation of the stock market was out of control as early as 1996, Greenspan even making a speech where the "irrational exuberance" of the market was alluded to. But he was unwilling to follow up on his observations. Instead, Greenspan actually lowered interest rates and did not increase margin lending requirements for buying securities, which fueled the bubble. The author makes it perfectly clear that Greenspan was a political player in Washington, even to the extent of compromising his duties as chairman of the Fed. Squeezed by the Clinton administration and by Congress, Greenspan continually lent credibility to the incredible run-up of the market, engaging in a lot esoteric discussion about a new economic era, etc.

There is a distinction made between the impact of inflation in essential goods and services versus that in financial instruments with some validity, especially in so far as the financial instruments do not have broad impacts. But that is now hardly the case with the stock market. The American public has actually been forced into the stock market with the evisceration of pension plans and the establishment of 401K plans that are heavily weighted toward stock purchase. Actually few Americans have the wherewithal to be individual stock purchasers operating through brokers; they are dependent upon mutual fund managers navigating market forces. The author chides Americans for flooding the markets with expectations of vast profits without acknowledging how few options are actually available for those having 401K funds deducted from paychecks.

The author performs a service in taking the luster off of the Greenspan shine; he became more of a political operative than a central banker. But even had Greenspan moved to contain the stock market bubble, larger issues remain regarding the stock market and its impact on even average-income Americans. Legislation is absolutely required to limit the speculative nature of the stock market and to emphasize dividends based on corporate earnings. The idea that someone should be able to cash in on a grossly inflated financial instrument that has little connection to a viable business entity is absurd and is harmful to the economy and society. Furthermore, 401K plans are much too limited. If corporate America wants to abandon its employees in terms of retirement income, employees should have far more options and devices for saving money. For example, why is it that the ordinary individual cannot tap directly into tax-free municipal and corporate bonds? Of course, the answer is that 401K money is the plaything of securities experts and their elaborate computer systems. A solid retirement system is the last concern of financial elites, who, of course, have vast sway in the election of politicians who, in turn, are more than willing to maintain the status quo.

Basically, the problems with American, corporate capitalism are far greater than a Fed chairman pandering to politicians and other elites. It would be wrong to maintain that only had Greenspan performed his required duties as a central banker that all would have gone well for the average American in his or her contact with the playground of the rich, the various stock exchanges. The author also discusses the current housing bubble, fueled ironically by the low interest rates instituted after the stock market bubble collapse, and the massive trade imbalance. The book is definitely informative as far as it goes.

Book Description

Broadcast News Writing, Reporting and Producing examines the skills, techniques, and challenges of writing and reporting for broadcast. Along with complete coverage of the fundamentals, the text presents up-to-date examples and issues through actual scripts and interviews with the people who bring us the news. Ten out of twenty five chapters focus on reporting topics, ranging from basic skills to specialty reporting to ethics. This new edition features such timely topics as the Jonesboro and Littleton shootings, the Clinton sex scandal, the CNN Tailwind story, the Elian Gonzales story, and other contemporary examples.

Broadcast News Writing Reporting and Producing emphasizes real-life situations; the problems that reporters, writers, assignment editors, and producers face every day are discussed in detail, as well as such topics as ethics, investigative reporting, the job market, legal issues, and interviewing techniques. Each chapter contains exercises for writing, review, and discussion so that students can learn and apply what they've read. This edition also includes new insights in civic journalism and computer-assisted reporting, and the impact of the Internet on news gathering.Broadcast

The text also contains writing samples from famous broadcast journalists like the late Edward R. Murrow, Charles Kuralt, Eric Sevareid, Paul Harvey, Charles Osgood, Susan Stamberg and Richard Threlkeld and others, all of whom not only offer examples of quality news writing, but also discuss how they write and report.

Features many examples of major recent news stories
New chapter with on computer-assisted reporting and the impact of the Internet on news gathering
Expanded chapters on producing and ethics in reporting

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Food Processing - An Industrial Powerhouse in Transition, 2d ed. (book reviews): An article from: Food Trade Review

Manufacturer: Food Trade Press Ltd.
ProductGroup: Book
Binding: Digital

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ASIN: B00097RKPM
Release Date: 2005-06-01

Book Description

This digital document is an article from Food Trade Review, published by Food Trade Press Ltd. on August 1, 1997. The length of the article is 316 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Food Processing - An Industrial Powerhouse in Transition, 2d ed. (book reviews)
Publication: Food Trade Review (Magazine/Journal)
Date: August 1, 1997
Publisher: Food Trade Press Ltd.
Volume: v67 Issue: n8 Page: p493(1)

Article Type: Book Review

Distributed by Thomson Gale

Food Processing: An Industrial Powerhouse in Transition

Average customer rating:

"...an authoratative...guide to food industry statistic..."

Food Processing: An Industrial Powerhouse in Transition
John M. Connor
Manufacturer: Lexington Books
ProductGroup: Book
Binding: Hardcover

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Food Science (Food Science Texts Series)

ASIN: 0669195111

Book Description

This book covers the growth, economic development, and business management of the US commercial food processing industry. Topics include the strategic options of food processors when facing the many distribution channels and sourcing options currently available; new processing and information technologies; the effect of biotechnological developments on the food processing industry, and an analysis of whether the food processing sector has participated in the overall improvement of the US economy.

Customer Reviews:

"...an authoratative...guide to food industry statistic...".......1999-04-22

Review by James M. MacDonald, Economic Research Service, USDA, appearing in the American Journal of Agricultural Economics, February 1999, page 252-253.

"Food Processing: An Industrial Powerhouse in Transition," by John M. Connor and W. A. Schiek, is not a textbook, and it doesn't contain much economic analysis: it is best thought of as a data handbook with commentaries.

Connor and Schiek (C&S hereinafter) provide a ready source of numbers on a wide variety of industry topics, and the industrious reader can use the table source citations as a ready research guide to the available industry data sources.

Given the authors' goals and the inevitable space constraints of the book. I don't believe that they could have included more analysis.

On topics that energize them, such as that on food demand and consumer choices in chapter 8, the book does a very nice job of interweaving basic theory, the results of formal demand analyzes, and the information that can be gleaned from item-level supermarket scanner data, while at the same time conveying the strengths and weaknesses of the several data sources for the issues at hand. This section provides a very nice overview on key issues on the demand side of food marketing, and I expect that I'll rely on it frequently. But on other topics, such as the very lengthy chapter on location, the presentation turns repetitive.

One of the book's real strengths lies in its demonstration of the variety of different data sources, aside from the well-known Census of Manufactures, that provide useful support for analyzes of food processing. Experienced researchers as well as managers, analysts, and grad students should be able to mine these pages for new and improved sources of information.

C&S show a keen appreciation of the construction of food demand and consumption measures, along with the strengths and weaknesses of the associated data sets. Similarly, they show a sophisticated understanding of market structure statistics in a short space, and accurately convey the difficulties inherent in attempting to measure rates of new product introductions. But I'd like to see some closer attention paid to the problems of developing useful price indexes.

In general, C&S provide an authoritative one-stop guide to food industry statistics and to the construction of those statistics--the footnotes can almost be lifted out as a separate commentary on data construction. While I wouldn't suggest that anyone should try to read the book through in a few sittings, it should continue to occupy a market niche as an indispensable quick source for anyone relying on food industry statistics.

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Food Processing: An Industrial Powerhouse in Transition, 2d ed.(Review) : An article from: American Journal of Agricultural Economics
James M. MacDonald
Manufacturer: American Agricultural Economics Association
ProductGroup: Book
Binding: Digital
ASIN: B00098NGFE
Release Date: 2005-07-28

Book Description

This digital document is an article from American Journal of Agricultural Economics, published by American Agricultural Economics Association on February 1, 1999. The length of the article is 1237 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Food Processing: An Industrial Powerhouse in Transition, 2d ed.(Review)
Author: James M. MacDonald
Publication: American Journal of Agricultural Economics (Refereed)
Date: February 1, 1999
Publisher: American Agricultural Economics Association
Volume: 81 Issue: 1 Page: 252(2)

Article Type: Book Review

Distributed by Thomson Gale

Book Description

Each year thousands of people dream of starting their own business, yet few can afford the legal fees associated with getting started. The How to Form a Corporation, LLC, or Partnership in . . . series leads entrepreneurs through the incorporating process in their own state. Complete with all of the necessary forms and step-by-step instructions, these books are the only state-specific incorporating guides available that include the regulations for starting a limited liability company or familiar partnership.

Customer Reviews:

Very shoddy work and poor effort.......2002-07-01

This book is page after page of only general information about forms of business; the sole proprietorship, partnership, corporation, and limited liability corporation. Yet the book was advertised as a book dealing specifically with Kansas businesses. The Kansas information is less than a tenth of the book and seems only an afterthought.

The author also doesn't seem to understand LLCs or how they are replacing the S Corporation.

The information found in this book is information any serious entrepreneur would have already seen on the web. Today we expect a print source to contain special or value-added information for the price we are paying. I encourage the reader to first find all information you can on the web , as it will easily be more than is contained in this book.

Book Description

Access the most important information you need quickly and easily with Course Technology's CourseCards.

Book Description

This digital document is an article from Careers & Colleges, published by Thomson Gale on September 22, 2006. The length of the article is 1292 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Alternatives to college: earning a bachelor's degree isn't the only way to advance your education.
Author: Gale Reference Team
Publication: Careers & Colleges (Magazine/Journal)
Date: September 22, 2006
Publisher: Thomson Gale
Page: 32(3)

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How to Market Your College Degree (Vgm How to Series)

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How to Market Your College Degree (Vgm How to Series)
Dorothy S. Rogers , and Craig Bettinson
Manufacturer: Vgm Career Horizons
ProductGroup: Book
Binding: Paperback

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Learn to market your liberal arts degree for a lifetime career. (includes related article) (Career Report: Liberal Arts): An article from: The Black Collegian

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Learn to market your liberal arts degree for a lifetime career. (includes related article) (Career Report: Liberal Arts): An article from: The Black Collegian
L. Patrick Scheetz , and Susan Stein-Roggenbuck
Manufacturer: iMinorities, Inc.
ProductGroup: Book
Binding: Digital
ASIN: B00092XZTW
Release Date: 2005-07-28

Book Description

This digital document is an article from The Black Collegian, published by iMinorities, Inc. on October 1, 1994. The length of the article is 3336 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Liberal arts graduates can also find fulfilling employment in the professional world, contrary to the popular notion that only practical fields such as engineering or business can assure graduates of a job. A recent study, in fact, predicted an increase in the hiring of liberal arts graduates in five years. However, liberal arts majors must think and rethink their interests and possible career paths as well as options to make themselves more marketable. They also need to keep an eye on areas where opportunities abound and exert efforts to be competitive.

Citation Details
Title: Learn to market your liberal arts degree for a lifetime career. (includes related article) (Career Report: Liberal Arts)
Author: L. Patrick Scheetz
Publication: The Black Collegian (Magazine/Journal)
Date: October 1, 1994
Publisher: iMinorities, Inc.
Volume: v25 Issue: n1 Page: p111(7)

Distributed by Thomson Gale

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Market Your College Degree (Here's How)
Dorothy Rogers , and Craig Bettinson
Manufacturer: NTC Learning Works
ProductGroup: Book
Binding: Paperback

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ASIN: 0844226238

Customer Reviews:

Nice numbers and good information.......2004-04-24

If you don't think you will like the book because of the title, take another look. I was considering a book for a class and found that pulling multiple books in the same subject matter gives you more info., reguardless of bias or point of view. I had no idea that one of the major changes to social security took place in 1974. This is like, just the other day. They mention the Pension Benefit Guaranty Corporation, and it is a very easy read. No, you will not get a pro and a con on who to vote for in 2004. Political animals should read, "The Looting of Social Security", by Allen Smith. That one is far more current. And, although I didn't agree with the materials, has a wealth of knowledge on current events.

Book Description

Make a positive transition from work to retirement.

Customer Reviews:

Some good common sense ideas.......2000-10-30

I have read the 1993 3rd edition several times. This is more than a financial planning book. It provides information on time management, wellness, and human support systems in planning for personal fulfillment in retirement.

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Comfort Zones : Planning Your Future

Manufacturer: Crisp Publications, Incorporated
ProductGroup: Book
Binding: Paperback
ASIN: B000HNAAVO

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